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You buy an 6.8% coupon, paid annually, 12-year maturity bond for $960. A year later, the bond price is $1,080. Face value of the bond
You buy an 6.8% coupon, paid annually, 12-year maturity bond for $960. A year later, the bond price is $1,080. Face value of the bond is $1,000. a. What is the yield to maturity on the bond today? (Round your answer to 2 decimal places.) What is the yield to maturity on the bond in one year? (Round your answer to 2 decimal places.) b. What is your rate of return over the year?
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